Flags of EU member states fly near a statue holding the euro symbol in front of the European Parliament in Brussels. / George Gobet, AFP/Getty Images

by John Waggoner, USA TODAY

by John Waggoner, USA TODAY

For stock investors, sending money abroad worked out pretty well, despite fears of a eurozone collapse. Whether Europe can ride out its debt crisis and rebound from its austerity programs in 2013 remains to be seen.

Most European stocks rebounded smartly from their 2011 lows during the height of the Greek debt crisis. Germany's DAX index, for example, soared 29.1% in 2012, vs. a 14.7% tumble in 2011.

Biggest gainers among the developed markets: Belgium, up 36.3%, and Denmark, up 30%, according to MSCI.

By MSCI's reckoning, Japan was a dead weight on international returns. Its broad-based Japan index rose just 6.2%. The large-cap Nikkei 225 index, however, soared to a 22.9% gain.

Spain, still struggling with massive unemployment and soaring debt, saw its stock market fall 3.6%. Greece was close behind with a 3.5% decline, and Portugal fell 0.5%.

Emerging markets also fared well in 2012, rising 15.1%, according to MSCI. China's stock market soared 18.7%. The standout: Turkey, up 61.2%.

The big question: How long international stocks, particularly in Europe, can maintain their rally. Austerity programs designed to cut government spending will help the biggest debtors - Italy, Greece, Portugal and Spain - in the long run. In the short term, however, massive layoffs mean massive unemployment, deflation and plunging economic growth in those countries.

The eurozone - the 17 countries that use the euro as a common currency - will probably muddle through in 2013, says Michael Hasenstab of Franklin Templeton Investments. "Greece will probably remain in the eurozone. Panic surrounding issues in the rest of the eurozone, such as in Spain, Italy and Ireland, also appears to us to be overstated."

One bright note for 2013: China is embarking on yet another stimulus program, which should help its major trading partners in Asia. Unlike previous programs, however, China's 2013 push will be to boost its domestic technology and consumer industries, rather than infrastructure.